Nf Motorcycle Business Strategy

After many years intense price war, most companies of china's motorcycle industry are confronting predicaments of the sector: minute overall profits, resembling product quality, similar marketing mode, and lack of technology innovation. For the past several years, NF Motorcycle Company (NFMC), a medium-sized state-holding public company, has experienced violent impact from private companies, joint ventures and collective-funded companies, which stripped of advantageous market status and deteriorated living conditions. So solving the problem of competitive strategy to respond to stern challenges to get rid of living predicament and to rebuild advantages of competition should come first.This paper, researching on the competitive strategy of NFMC, by using analytical tools such as SWOT, PEST, five forces framework etc., first, confirmed external macro-environment and industrial conditions, predicted development trend of this sector, and observed four critical success factors: low-cost competence, marketing competence, R&D competence and attractive force of brand. Second, made clear of most critical rivals to NFMC by using strategy group analysis method. Meanwhile, based on historical data and related documents of the industry, analyzed internal resources and competency of NFMC in the way of comparison. Third, quantitatively assessed internal and external environmental factors of NFMC by means of EFE, IFE matrix and developed co-existence of external opportunities and internal disadvantages. Fourth, according to SWOT strategic combination and strategic clock theory, ensured that NFMC should follow focused differentiation strategy and further, made medium and long term plans for NFMC, which suggest NFMC build medium-high class brand, shape comprehensive competitive competence with features of advanced technology, dominating brand and lean production, and finally form market-oriented company. At last, in order to implement the strategic plan effectively, advanced advisory measures: reforming personnel management system to active HR, carrying out brand strategy to better profile of brand, improving quality management to realize lean production, innovating R&D system to make use of con-current engineering, reducing hierarchy of organization to shape the learning corporate culture.